Conflict when generating new Alchemy project

[tgspears]

When I run alchemy new testing_alchemy or bundle install inside the rails project created by alchemy new testing_alchemy I get:

Resolving dependencies...
Bundler could not find compatible versions for gem "rails":
  In Gemfile:
    alchemy_cms (>= 0) ruby depends on
      rails (< 5.0, >= 4.2.0) ruby`
    rails (= 4.0.5) ruby

Using:
Rails 4.2.3
Ruby 2.2.1p85 (2015-02-26 revision 49769) [x86_64-linux]
'alchemy_cms', github: 'AlchemyCMS/alchemy_cms', branch: '3.2-stable'

I've tried using rails 4.0.5 and gem 'alchemy_cms', github: 'magiclabs/alchemy_cms', branch: '3.0-stable' because that was a possible work around for a similar problem but no luck.

[robinboening]

Can you please show your Gemfile? I think something locks your rails version to 4.0.5.

Have you tried bundle update rails ?

[tgspears]

When I run bundle update rails I get the error:
This Bundle hasn't been installed yet. Runbundle installto update and install the bundled gems.
Then naturally running bundle install gets me back to the error.

My gemfile is as follows (sans comments):

source 'https://rubygems.org'

gem 'rails', '4.2.3'
gem 'sqlite3'
gem 'sass-rails', '~> 5.0'
gem 'uglifier', '>= 1.3.0'
gem 'jbuilder', '~> 2.0'
gem 'sdoc', '~> 0.4.0', group: :doc

group :development, :test do
  gem 'byebug'
  gem 'web-console', '~> 2.0'
  gem 'spring'
end

gem 'alchemy_cms', github: 'AlchemyCMS/alchemy_cms', branch: '3.2-stable'
gem 'alchemy-devise', github: 'AlchemyCMS/alchemy-devise', branch: 'master'
gem 'capistrano-alchemy', github: 'AlchemyCMS/capistrano-alchemy', branch: 'master', group: 'development'

[tvdeyen]

Should be fixed with the release of 3.2.0 0081d73